POST UTME UI 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦20 and ₦30 respectively, find the consumer's optimal bundle of x and y.
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 0
D. x = 0, y = 3
Question 2
A farmer is considering two different irrigation systems for her farm. System A \costs ₦100,000 and has a 10% chance of failure, while System B \costs ₦150,000 and has a 5% chance of failure. What is the expected value of the \cost of each system?
A. ₦105,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 3
A country's government budget is given by B = T + G, where T is tax revenue and G is government sp\ending. If T = $50 billion and G = $30 billion, what is the budget balance?
A. $20 billion
B. $30 billion
C. $40 billion
D. $50 billion
Question 4
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the wage rate is W = 5, what is the optimal level of labor (L) that the firm should employ, given that the firm's objective is to maximize profits?
A. 10
B. 20
C. 30
D. 40
Question 5
A monopolistically competitive firm is producing a good with a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the firm's profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A country's balance of payments is given by the following table:\n\n| Category | 2020 | 2021 | 2022 |\n| --- | --- | --- | --- |\n| Exports | 100 | 120 | 140 |\n| Imports | 80 | 100 | 120 |\n| Net Factor Income | 10 | 15 | 20 |\n| Net Transfer | 5 | 10 | 15 |\n| Balance of Payments | ? | ? | ? |\n\nWhat is the balance of payments for 2022?
A. \( 140 - 120 + 20 + 15 = 55 \)
B. \( 140 - 120 + 20 + 15 = 55 \)
C. \( 140 - 120 + 20 + 15 = 55 \)
D. \( 140 - 120 + 20 + 15 = 55 \)
Question 7
A firm's demand function is given by Qd = 100 - 2P, and its supply function is Qs = 2P - 10. If the market equilibrium price is $5, what is the quantity demanded?
A. 50 units
B. 60 units
C. 70 units
D. 80 units
Question 8
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer's annual income is ₦500,000, how much tax will they pay?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 9
A country's export supply function is given by X = 100 + 2P - 3Y, where X is exports, P is price, and Y is income. If the price and income are increased by 10% and 5% respectively, what is the percentage change in exports?
A. 5%
B. 8%
C. 10%
D. 12%
Question 10
A monopolist is producing a good with a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the firm's profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its net factor income from abroad is ₦10 billion. Calculate the country's GNP.
A. ₦90 billion
B. ₦110 billion
C. ₦120 billion
D. ₦130 billion
Question 12
A firm's elasticity of demand is given by E = -2. If the price of the good increases by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -15%
C. -10%
D. -5%
Question 13
A government is considering implementing a new policy to reduce inflation. The policy involves reducing the money supply by 10%. If the current inflation rate is 5%, what is the expected impact on the inflation rate after the policy is implemented?
A. -5%
B. -10%
C. -15%
D. -20%
Question 14
A monopolist is producing a good with a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the firm's profit-maximizing quantity?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 15
A consumer faces the following budget constraint: 2x + 3y = 12. If the consumer's utility function is given by U(x,y) = 2x + y, what is the consumer's optimal bundle of x and y?
A. (2, 4)
B. (4, 2)
C. (3, 3)
D. (1, 5)

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